Procedures under GST - Hiregange€¦ · Procedures under GST ... Issue delivery challan for each...

Hiregange & Associates 1

Procedures under GST

BY CA LAKSHMI G K

Coverage


Procedure to register under GST

Procedure to supply goods

Books of accounts to be maintained under GST

Procedure to pay GST

Procedure to file returns under GST

Availment of ITC

Mismatch of ITC

Distribution of credit by ISD

Job work procedure

TRAN - 1

NEW and IMPORTANT!!!


Transitional Formats has been released yesterday.

Closing balance of Cenvat credit – section 140 – GST TRAN-1 – 90 days from appointed day + extension of 90 days.


Registration under GST



Taxable person means a person who is:-

Registered or

Liable to be registered under section 22 or 24

• Every supplier shall be liable to register

In the state or union territory other than special category states

From where he makes taxable supply

Aggregate value exceeds 20L

• In case special category states – 10L



Compulsory Registration if Aggregate Turnover > 20 Lakhs (state wise)

Aggregate Turnover = Taxable + Exempt (includes non-taxable)+Export +

Inter-State supplies of persons having same PAN on all India basis

Existing Assessee need to register compulsory – if not liable then

application to be made for cancellation of provisional id.

No registration in case of supply of Goods or Services not liable or wholly

exempted

Voluntary Registration

Separate registration for Business Vertical within the State can be taken

(SEZ compulsory separate business vertical)



State-wise Registration

Suo motto registration by proper officer – if failed to register – within 30

days need to apply for registration.

Compulsory Registration:

• Inter-state taxable

supplier

•Casual and NR taxable

persons

•RCM liable

• Tax deductor u/s 51

• Tax collector u/s 52

• Agent

• ISD

• e-com Supplier

• e-com Operator

• OIDARS

• Other notified

person

Registration – effective date


In the first case, Mr. A is eligible to avail the ITC on closing stock as well as purchases made from 1st July 17 onwards. (section 18)

In the next case, Mr. A is eligible to avail the ITC only for the purchases made w.e.f 20th of Aug 17

Particulars Date of applicable Date of registration granted

Effective from

A becomes liable to register from 01.07.2017

15.07.2017 10.08.2017 01.07.2017

A becomes liable to register from 01.07.2017

01.08.2017 20.08.2017 20.08.2017


Supply documents under GST

Supply Documents


Invoice for outward supply, inward supply from unregistered person, Export and stock transfer.

Revised Invoice – Supplies made between Effective date of RC and date of issuance of RC

Bill of Supply – Exempted and composition scheme

Debit note – revision in price

Credit note – revision in price

Receipt voucher – On receipt of advance

Payment voucher – advance payment to supplier – RCM

Refund voucher - Refund of advance, where no supply made against the advance received & no invoice raised

Supply Documents


Delivery challan

Job work

Transportation of goods for reason other than by way of supply

Liquid gas

Other than by way of supply

Transportation of goods in semi or completely knocked down

Issue complete invoice before dispatch of 1st consignment

Issue delivery challan for each subsequent consignment – give reference of invoice

Each consignment – accompany by copies of corresponding DC and certified copy of invoice

Original copy of invoice – send along with last consignment.

Supply Documents - Invoice


Name, address and GSTIN of supplier;

A consecutive serial number not > 16 characters and date of invoice (dash and slash can be used);

Date of issue;

Name, address and GSTIN or UIN, if registered, of the Receiver;

In case of supplies to unregistered person where taxable supply exceeds Rs.50,000, name, address and address of delivery along with name of state and its state code is compulsory;

HSN code of goods or Accounting Code of Services;

Description of goods or services along with quantity and unit, unique quantity code;

Total value

Supply Docu. – Receipt voucher


amount of advance taken;

rate of tax (central tax, State tax, integrated tax, Union territory tax or cess);

amount of tax charged in respect of taxable goods or services

POS along with the name of State and its code- of inter-State trade or

commerce;

Provided that where at the time of receipt of advance,

the rate of tax is not determinable, the tax shall be paid at the rate of

eighteen per cent.;

the nature of supply is not determinable, the same shall be treated as inter-

State supply

Supply Docu. – Refund voucher


amount of advance taken;

rate of tax (central tax, State tax, integrated tax, Union territory tax or cess);

amount of tax charged in respect of taxable goods or services

POS along with the name of State and its code- of inter-State trade or

commerce;

Provided that where at the time of receipt of advance,

the rate of tax is not determinable, the tax shall be paid at the rate of

eighteen per cent.;

the nature of supply is not determinable, the same shall be treated as inter-

State supply

Supply Docu. – Payment voucher


Amount paid

Rate of tax (central tax, State tax, integrated tax, Union territory tax or cess)

Amount of tax payable in respect of taxable goods or services (central tax,

State tax, integrated tax, Union territory tax or cess)

Place of supply along with the name of State and its code, in case of a supply in

the course of inter-State trade or commerce

Supply Docu. – DC


date and number of the delivery challan,

name, address and GSTIN of the consigner, if registered,

name, address and GSTIN or UIN of the consignee, if registered,

HSN code and description of goods,

quantity (provisional, where the exact quantity being supplied is not known),

taxable value,

tax rate and tax amount – central tax, State tax, integrated tax, Union territory tax or cess, where the transportation is for supply to the consignee,

place of supply, in case of inter-State movement, and

signature.

Supply Docu. – DN/CN


In the following situation debit note or credit note may be issued:

Taxable value / tax charged > actual taxable value / tax payable – credit note can be issued on recipient.

Condition: incidence of tax and interest on such supply has not been passed by him to any other person.

Taxable value / tax charged < actual taxable value / tax payable – debit note can be issued on recipient.

Content : Serial number and date of the corresponding tax invoice or, as the case may be bill of supply;

Supply Docu. – Others


ISD – GSTIN number of recipient and amount of credit distributed;

GTA –

• gross weight of the consignment;

• name of the consignor and the consignee;

• registration number of goods carriage in which the goods are transported;

• details of goods transported;

• details of place of origin and destination;

• GSTIN of the person liable for paying tax whether as consignor, consignee or goods transport agency

Supply Docu. – E-way bill


Every Registered person who causes movement of goods – consignment value exceeding fifty thousand.

In relation to supply; or

For reason other than supply; or

Due to inward supply from an unregistered person.

The details of goods – filled in GST INS-1 in common portal – GSTR-1.

Upon generation – EBN _ E-way Bill Number in common portal.

Value < Rs.50,000/- option

New E-way bill to be generated – if the goods are shifted from one conveyance to other in transit

Transporter can generate the e-way bill – INS-2



E-way can be cancelled – within 24 hours

E-way is valid for:

Invoice or Bill of Supply or Delivery Challan. Can also use the inv ref number generated by uploading the invoice in Form GST INV-1



The details of e-way bill – made available to recipient in common portal – he is required to accept the said details – deemed acceptance after 72 hours

The person in charge for transportation shall carry:-

Invoice or bill of supply or delivery challan;

Copy of e-way bill – physically or mapped with Radio Frequency Identification Device (RFID)

RFID – to be notified by the Commissioner.

Verification shall be carried out by the PO – recorded the same in INS-03

Once verification is done at once place within or outside the state, no further physical verification shall be carried out again in the state.


Books of accounts under GST

Books of Accounts


Production or manufacture of goods;

Inward and outward supply of goods or services or both;

Stock of goods;

Input tax credit availed;

Output tax payable and paid; and

Such other particulars as may be prescribed:

Every registered person shall keep and maintain, at his principal place of business, as mentioned in the certificate of registration, a true and correct account of-

Record of

Goods, services imported, exported

Supplies liable under RCM

Invoices, BoS, DC, DN, CN, payment, receipt and refund vouchers

E-way bills

Maintain the records separately for each activity – mfr, service, trading, etc.

Stock records – op+inward – issues, lost, stolen, destroyed w/o etc. = c/s. Scrap and wastages

Name and address of customers, suppliers and all places where goods are stored (including in-transit storage).

If goods are stocked at places other than the above it will be deemed as supply

Accounts and records – under draft rules further prescription

Warehouse or Godown or storage place for

goods

Every owner

Every operator

Every transporter

or

and

Shall maintain records of the consigner, consignee and other relevant details of the goods in such manner as may be prescribes

The above requirement is irrespective of registration

Books of Accounts

Person executing works contract shall keep separate accounts for each works contract

the names and addresses of the persons on whose behalf the works contract is

executed

description, value and quantity(wherever applicable) of goods or services received

for the execution of works contract

description, value and quantity(wherever applicable) of goods or services utilized

in the execution of each works contract

the details of payment received in respect of each works contract

the names and addresses of suppliers from whom he has received goods or services

Books of Accounts – works contractor

• For a period of 72 months from the date of filing of Annual return

• i.e., 6 years from the date of filing of AR In Normal case

• Upto one year after disposal of such case • Or; as mentioned above; • Whichever is later

Appeal or revision or any other proceeding

Retention period


Payment procedure under GST

Electronic Liability Register


Maintained in FORM GST PMT-1 on the common portal

Amount to be debited in ELR

Tax, Interest, Late fee , or any other amt payable as per return filed

Tax, Interest, Penalty or any other amt payable as determined by a proper officer against any proceeding

Tax & interest payable as a result of mismatch of input tax credit as per sec 42 or 43 or 50

Any amt of interest that may accrue from time to time

Electronic Liability Register


The following liability to be payable from cash ledger only:

TDS – section 51

TCS – section 52

Amount payable on reverse charge

Composite tax – section 10

Interest

Penalty

Fee or

Any other amount

Electronic Credit Ledger


Section 2(46) Electronic credit ledger means the electronic credit ledger referred to in section

49(2).

Self assessed ITC in the return of a taxable person - credited to this ledger, as per section 41.

To be maintained in FORM GST PMT-2

The following will recorded separately in the ledger,

Credit of inputs, input services, capital goods, reverse charge claimed in return

Credit received through ISD

Credit on account of merger, pre-registration etc.

Utilisation of credit from the same major head or from other major head (cross utilization) will

be recorded accordingly.

Utilisation of credit for return and other than return related liabilities will be recorded separately.

Refund claimed from ITC ledger will be reduced and if rejected or withdrawn will be credited

back.

Electronic Cash Ledger


Section 2(43) Electronic cash ledger means the electronic cash ledger referred to in section 49(1)

Date of deposit = Date of credit to the account of the appropriate Govt. in the authorised bank

Also Includes Sec 51 TDS & sec 52 TCS

Sec – 51 - TDS


Deducted by

- Department or establishment of CG / SG

- local authority - Governmental agencies

- Notified persons

Condition Intra or Inter-State Transaction

Value > 2.5 lacs Deduct 1+1%

Action Pay with in 10th of Subsequent

month

Issue a TDS certificate – GSTR-7A

File GSTR 7

Sec – 52 - TCS


eCommerce Operator

Every Supply through portal

aggregate value of taxable supplies of goods or services or both

Specified Transaction of 9(5) excluded

Condition All Transactions No Monetary

Limit Collect 1+1%

TCS

Action Pay with in 10th of Subsequent month

File GSTR 8


Returns under GST

• Upload details of outward supply on 10th of subsequent month

GSTR-1

• Data will be auto populated

• Make additions, modifications and deletions from 11th to 15th

GSTR-2A • Additions, modifications

and deletion by recipient will be made available to supplier and submitted on 15th

GSTR-2

• Corrections in Form GSTR-2 will be made available to supplier

• Supplier has to accept or reject adjustments by 17th

GSTR-1A • Auto-populated return will be

available for submission along with the payment on 20th

GSTR-3

Normal/Regular Taxpayers monthly returns

Overview of returns

Form Description Due date / Periodicity

GSTR 1 Outward supplies made by taxpayer 10th of the next month

GSTR 2A Details auto populated from GSTR 1 to be added corrected or deleted by

recipient

11th on wards

GSTR 2 Inward supplies received by a taxpayer 15th of the next month

GSTR 1A Details auto populated from GSTR 2 made available to supplier to

accept/reject

17th of the next month

GSTR 3 Monthly return 20th of the next month

GSTR 4 Quarterly return for Compounding Taxpayer 18th of the month next to quarter

GSTR 5 Periodic return by Non-Resident Foreign Taxpayer 20th of the next month or 7th day from End of

Registration which ever earlier

GSTR-5A Details of supplies of OIDARS by a person located outside India made to

non-taxable persons in India

GSTR 6 Return for Input Service Distributor (ISD) 15th of the next month

GSTR 7 Return for Tax Deducted at Source (TDS) 10th of the next month

GSTR 8 Details of supplies effected through e-commerce operator 10th of the next month

GSTR 9 Annual Return By 31st December of next FY

GSTR-1


Every registered taxable person other than

an ISD

a NR taxable person and

a person paying tax under the provisions of COT or TDS or TCS,

shall furnish, electronically, the details of outward supplies of goods or services effected during a tax period

on or before the 10th of the month succeeding the said tax period or such extended time and

such details shall be communicated to the recipient of the said supplies within the time and in the manner as may be prescribed (Section 37).

Details of Outward supply means details of invoices, debit notes, credit notes and revised invoices issued.

GSTR-1


If the details filed by the taxable person remains unmatched u/s 42 or 43, shall upon discovery of any error or omission:

rectify such error or omission in the tax period during which such error or omission is noticed and

pay tax and interest, if any, in case of any short payment of tax on account of such error or omission.

Provided that no such rectification shall be allowed to be made after filing of annual return u/s 39(1) or furnishing return for the month of September of the next year whichever is earlier.

GSTR-1


Contents of GSTR-1

Table 4: B-B (invoice level, rate wise)

Outward supplies to registered person

Outward supply attracting RCM

Outward supply through E-commerce

Table 5: B-C (Large)

Outward supplies – inter state

Supplies made through E-commerce – operator and rate wise

Table 6: Zero rated and deemed exports

Table 7: B-C (Small) net of debit and credit note

Consolidated rate wise

Out of consolidated rate wise supply – how much with respect to E-commerce (operator wise)

GSTR-1


Table 8: Nil rated, exempted and Non-GST (intra and inter and registered and unregistered)

Table 9: amendments, debit note, credit note & refund voucher

Table 10: Amendments w.r.t unregistered persons

Table 11: Consolidated statement of advance received / advance adjusted in the current tax period.

Table 12: HSN wise summary of outward supplies

Table 13: Documents issued during the tax period

HSN:

Turnover 1.5 Cr to 5 cr – 2 digit

More than 5 Cr – 4 digit

GSTR-2


The details of supplies

modified,

deleted, or

included by the recipient

shall be communicated to the supplier concerned in form GSTR ITC mismatch report.

No such modification shall be allowed after filing return for September of the next year or filing of annual return.

These modifications or updates have to be accepted or rejected within 17th of the next month by the supplier.

GSTR-2


Table 3: Inward supply from registered person (other than RCM)

Table 4: Inward supply on which tax to be paid under reverse charge (RCM, unregistered and Import)

Table 5: Inputs / CG from Overseas or SEZ

Table 6: Amendments (debit note / credit note)

Table 7: supplies received from

Composition taxable person

Exempted

Nil rated

Non GST supplies

GSTR-2


Table 8: ISD Credit received

Table 9: TDS and TCS credit received

Table 10: Consolidated statement of advance paid / advance adjusted (Reverse charge supplies)

Table 11: ITC reversal

Table 12: addition or reduction – Mismatch

Table 13: HSN summary of inward supplies

GSTR-3


Every person (except ISD/NRTP/CTP/TDS/TCS) shall pay to the account of the appropriate government the tax due as per such return before the due date for filing such returns.

Every such person shall file returns for every tax period whether or not any supplies of goods or services has been effected during such tax period.

If such person discovers any error or omission or incorrect particulars in the returns filed shall rectify such error, omission or incorrect details in the return to be furnished for the month or quarter subject to payment of tax and interest.

Provided that no such rectifications shall be allowed after the due date for the month of September of the next year or filing of annual return whichever is earlier.

GSTR-3


Table 3: turnover of all kinds of outward supply (auto-populated)

Table 4: Outward supplies:

Taxable supplies (other than RCM + zero rated)

Supplies attracting RCM

Zero rated with payment of tax

Value of supplies made though an e-commerce

Intra state supplies

Table 5: Inward supplies:

RCM

Import of service

Table 6: ITC

GSTR-3


Table 7: Addition and reduction – mismatch

Table 8: Total tax liability

Table 9: Credit of TDS and TCS

Table 10: Interest liability:

Output Liability On mismatch

ITC claimed on Mismatched invoice

On account of other ITC reversal

Undue excess claim or excess reduction

Credit of interest on rectification of mismatch

GSTR-3


Interest liability carry forwarded

Delay in payment of tax

Table 11: Late fee

Table 12: Tax payable and paid

Table 13: interest, late fee, any other amount payable and paid

Table 14: Refund claim

Table 15: Debit entry in ECL / ECrL/Interest payment


Availment of ITC under GST

Availment of ITC


ITC can be availed on all goods and services subject to section 16 & 17 of CGST Act, 2017.

Credits are required to be bifurcated as follows at invoice level:

Directly relating to non-business – not eligible – T1

Directly relating to exempted supply – not eligible – T2

Services of section 17(5) – not eligible – T3

Directly relating to taxable supply – 100% - eligible – T4

Common credits – formulae of Rule 7 of ITC – C2

Common services (business and other than business) – 5% reversal

Common Capital Goods – formulae of Rule 8 of ITC (avail credit full on receipt & reversal credit every month with interest)

Availment of ITC


The ITC is allowed on provisions basis.

Nature of accounts to be maintained:

For output liability

CGST output tax A/c

SGST output tax A/c

IGST output tax A/c

UTGST output tax A/c

In case payment to vendor is not made within 180 days – ITC availed is required to be reversed.

For credit availment CGST input tax credit A/c SGST input tax credit A/c IGST input tax credit A/c UTGST input tax credit A/c


Mismatch of credit- under GST

Matching of ITC – sec 42 Would be matched with following;

GSTIN of the supplier;

GSTIN of the recipient;

Invoice/ or debit note number;

Invoice/ or debit note date;

taxable value; and

tax amount:

ITC availed as per GSTR-2A – shall be treated as matched if the supplier furnishes a valid return

ITC equal or less than the output tax paid by the supplier – treated as matched

Matching of ITC – sec 42 The Final acceptance of ITC – communicated – FORM GST MIS – 1.

Previous tax period mismatch, matched during the tax period would also be communicated in FORM GST MIS – 1.

Any discrepancy in claim of ITC is communicated – before last day of the month in which matching has been carried out

FORM GST MIS 1 – Recipient

FOMR GST MIS 2 – Supplier

The supplier / recipient – may make suitable rectification in outward/inward statement – for the month in which the discrepancy is made available.

if not, added to output tax liability of recipient – for the month succeeding the month in which discrepancy made available.

If later rectified – credit is taken back and even the interest is credited to ECL

Flow of GST Input

Matching of ITC – sec 43 Reduction in output tax liability shall be matched with;

GSTIN of the supplier

GSTIN of the recipient

credit note number

credit note date;

taxable value; and

tax amount:

Acceptance of credit in GSTR-2 without amendment – matched

Reduction is allowed/matched – if ITC reversed is equal or more than the reduction claimed.

Matching of ITC – sec 43

The Final acceptance of ITC – communicated – FORM GST MIS – 3.

Previous tax period mismatch, matched during the tax period would also be communicated in FORM GST MIS – 3.

Any discrepancy in claim of ITC is communicated – before last day of the month in which matching has been carried out

FORM GST MIS 4 – Recipient

FOMR GST MIS 3 – Supplier

The supplier / recipient – may make suitable rectification in outward/inward statement – for the month in which the discrepancy is made available.

if not, debited to liability register of supplier – for the month succeeding the month in which discrepancy made available.


ISD – credit distribution - under GST

ISD


ITC of the following need to be distributed (Rule 4 of ITC Rules):

ITC on eligible input services

ITC on ineligible input service

Distribution of credits to other branches / locations

Credit attributable to a particular recipient – distribute to that unit/recipient

Credit attributable to more than one recipient – distribute on pro rata basis – relevant period.

Credit to be distributed by issuing an ISD invoice to the recipient

Compulsory registration even if registered under present law – no enrollment scheme

Credit to be distributed cannot exceed the credit available for distribution

File the returns within 13 days from the end of the month

ISD Distributor and recipient in different states

Distributor and recipient in the same state

IGST CGST SGST IGST

CGST IGST

SGST IGST SGST

CGST


Job work under GST

Job Work under GST


The goods can be sent for job work with payment of GST – intimation is

required

Inputs sent for job work – within 1 year

Capital Goods sent for job work – within 3 years

Not received within the said period – treated as supply – when the goods

were sent for job work.

The principal can avail the credit on goods, even though the same is sent

directly to job worker.

Job Work under GST


The goods can be dispatched directly from job worker

The goods can be sent to another job worker premises

The goods can be received back in any place of business of principal.

The details of challans in respect of goods dispatched to a job worker or

received from a job worker during a tax period shall be included in

FORM GSTR-1 furnished for that period


Composite Scheme

Other procedures under GST


Composition scheme:

Intimation – electronically file in CMP-01 – after provisions Id granted

New registrant – option in REG-01;

File intimation in CMP-02 prior to commence of the financial year; and

File statement in ITC-03 – within 60 days from the commencement of relevant FY.

Effective date for new registrant – sub-rule 2 or 3 of Registration Rules.

For any clarification

[email protected]


mailto:[email protected]

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